Investment Appraisal

A feasibility study/investment appraisal provides a comprehensive and detailed assessment of the market, operational, technical, managerial and financial aspects of your business project. The outcome of the study usually leads to any of the three under-listed decisions;

• decide that the project is viable and move forward with it
• decide to do more study and or analyze additional alternatives
• decide that the project is not viable and abandon it.

Together with design, feasibility and appraisal function as the interface between conception and reality. They link the planning set of the project tasks-identification, formulation and preliminary design with the action oriented tasks-selection and approval, activation, implementation, handover and evaluation.

The conclusions of the feasibility study/investment appraisal outline in depth the various alternatives examined and the implications, strengths and weaknesses of each. It thus helps to narrow the scope of the project to identify the best investment. The ‘go/no-go’ decision is one of the most critical in business development. It is the point of no return. Once you have definitely decided to pursue an investment venture, there is usually no turning back. The feasibility study will be a major information source in making this decision. This indicates the importance of a properly developed feasibility study.

The decision to conduct a feasibility study should not be taken lightly. It may be an expensive and time consuming process. However, not doing a feasibility analysis can be even more expensive in terms of the poor decisions you may make from not conducting the proper analysis. Therefore as a builder will not begin construction without a blue print, prudent eager real estate investor should not rush into new investments without a feasibility study. The role of a comprehensive thoughtful feasibility study in real estate investment decision cannot be overemphasized. It focuses on helping answer the essential question of “should we proceed with the proposed project idea?”

At Neo Westend, we have duly qualified and experienced experts in undertaking real estate feasibility studies/investment appraisals.